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Title Insurance

Why Do You Need Title Insurance?

The sale and purchase of residential or commercial real estate property is a complex process, and title insurance has become a must for a successful transaction. Mistakes in a prior deed, an outstanding ownership claim, a hidden lien or even fraud are common occurrences.  All of these problems can result in losses for the owner or lender – and that is where title insurance comes in to protect the owner or lender against loss.

 

Benefits of Title Insurance for the Owner

Owner’s title insurance protects you against defects in the title to your property which originate prior to the policy date. While lenders often require property owners to purchase the lender’s title insurance to protect their interests, property owners must purchase a separate owner policy to protect themselves from covered losses—including court costs and attorneys’ fees—that could result from title defects. 

The risks covered happen – nearly a billion dollars in claims are paid every year in the industry. An owner’s policy involves a one-time premium for coverage that lasts as long as you own your property or are liable under warranties after selling. The only time it may be necessary to purchase additional coverage is when the value of the insured property has increased significantly since the date of the original policy.

  

Benefits of Title Insurance for the Lender

Lender’s title insurance insures that the lender's lien is valid and in the intended lien position, and that title to property is as shown on the policy. Lender’s title insurance protects against title defects which originate prior to the date of the policy.